Electrical Directory

FAQ: Wind Power

Q. What are the Promotional policies for Wind farm developer...

Q. What are the Promotional policies for Wind farm developers?

A package of fiscal and financial incentives will be given, which includes concessions such as

  1. 80% accelerated depreciation,
  2. concessional custom duty on specified items,
  3. excise duty exemption, sales tax exemption,
  4.  income tax exemption for 10 years, etc.

Q. What are the environmental benefits of wind power?

Q. What are the environmental benefits of wind power?

Wind energy system operations do not generate air or water emissions and do not produce hazardous waste or deplete natural resources such as coal, oil, or gas, or cause environmental damage through resource extraction and transportation. Wind's pollution free electricity can help reduce the environmental damage majorly caused by conventional power generation. The most important thing about wind energy is it does not emit Green House Gases.

The build-up of greenhouse gases is not only causing a gradual rise in average temperatures, but also seems to be increasing fluctuations in weather patterns and causing more severe droughts.

 Use of large scale wind generation will bring about a significant alleviation to these problems.

Q. What are the facilities given by NEDCAP to the developers...

Q. What are the facilities given by NEDCAP to the developers?

NEDCAP may facilitate required clearances for the project at the State and Central Government levels and grant of loans by IREDA/PFC/REC and other term loan Agencies/Commercial Banks as required by the Developer and regulate the allotment of wind generation power projects.

Q. How Carbon credits are shared?

Q. How Carbon credits are shared?

The Eligible Developers who opt for sale of energy to DISCOMs shall share carbon credits with DISCOMs. The developer is eligible for carbon credits under the Clean Development Mechanism (CDM). They may be allowed to retain 90% CDM benefit and pass on 10% benefit to the Distribution Company. However, this is subject to the orders of the Commission in this regard.

Q .What is the Duration of PPAs or Wheeling Agreements?

Q .What is the Duration of PPAs or Wheeling Agreements?

The PPAs may be for 20 years as per the present norms. The wheeling agreement may be as per the Open Access Regulations approved by the Commission from time to time.

Q. How the generated power is used?

Q. How the generated power is used?

Developers would be eligible for using the power produced for captive consumption or making sale to a third party or to DISCOMS. A PPA will be required to be entered into with concerned DISCOM as per the power purchase guidelines and Wheeling Agreements will be required to be entered into with TRANSCO / DlSCOM’s as per Open Access regulations, and any other relevant guidelines issued by the Regulatory Commission.

Q. What is the Tariff for purchase of energy & allotment of ...

Q. What is the Tariff for purchase of energy & allotment of Government lands?

The DISCOMs are permitted to offer Rs.3.50 (Three Rupees & fifty paisa only) per unit (KWH) to the Power being generated from wind Power projects for a period of 10 years so as to enable the DISCOMS to enter Power purchase agreements subject to obtaining the consent of the APERC.  In case any eligible developer- offers less than this tariff (Rs.3.50 Ps.), such developer will be given preference in allotment of government land.

Q. How the land is allotted to the wind farm developers?

Q. How the land is allotted to the wind farm developers?

The procedure for allotment of government land to private developers at market value will continue subject to condition that the land is not used for any other purpose other than setting up of Wind Farm. To facilitate quicker execution of the project, the government has authorized respective District Collector to handover the land in advance possession to the power developers subject to the following conditions.

  1. The developer should deposit the cost of land as fixed by the Collector.
  2. They should give an undertaking to the satisfaction of the Collector that the developer would pay enhanced cost in case; it is revised at a later date at the time of issuing alienation orders. This existing procedure will be continued.
  3. In case of wind power projects being set up for own/captive use or 3rd party sale, government land may be made available on higher priority.
  4. If the wind farm is set up in private land then the eligible developer shall procure the land from the landholder.

Q. Is banking of energy allowed? What is the case if energy ...

Q. Is banking of energy allowed? What is the case if energy generated is not consumed?

 Banking of energy will not be allowed. The energy generated, if not consumed during the billing month, would be treated to have been sold to respective DISCOM.  DISCOM may pay for such unconsumed/unutilized energy at the following tariff: 75% of Rs.3.50 per unit or 75% of the lowest tariff resulting from the bidding process under this policy, whichever is lower. This will be subject to approval by the APERC.

Q. What are the concessions given to the wind farm developer...

Q. What are the concessions given to the wind farm developers?

The eligible developers may be given concessional wheeling and transmission charges, as there will be no emission of green house gases from the wind farms. This will be subject to approval of APERC. The concessional wheeling and transmission charges for captive use or 3rd party sale may be in kind at 5% of energy delivered into the grid (which includes transmission and distribution losses).

Q. What are the provisions given to the wind farm developers...

Q. What are the provisions given to the wind farm developers?

Provisions provided to wind farm developers are banking, evacuation, land allotment and others help to address the financial health of the firms setting up wind power plants.

  1. Developers would be eligible for using the power produced from the wind energy generators for captive consumption or making sale to a third party or to DISCOMs.
  2. The DISCOMs are permitted to offer Rs.3.50 per unit to the wind power projects for a period of 10 years.
  3. The eligible developer shall bear the entire cost of power evacuation facilities for interconnecting the wind farms with the grid.
  4. The 3rd party sale will be permitted only to HT - I category consumers.
  5. The government land to be allotted to private developers at market value.

Each eligible developer may be allocated available government land to harness up to a maximum of 200 MW of wind power initially. After commissioning of 100 MW capacity wind energy plants in the 1st stage in the allocated government land, the government may release land for another 100 MW capacity wind energy plants. Wind energy plants being set up for own/captive use or 3rd party sale may be given higher priority in allotment of government land.

Q. Who is the Nodal Agency for implementation of wind powe...

Q. Who is the Nodal Agency for implementation of wind power policy?

The NEDCAP has been designated as nodal agency by the GoAP in implementation of this policy. It can approve projects up to 20 MW capacity. NEDCAP may facilitate required clearances for the project at the state and central government levels and grant of loans by IREDA/PFC/REC and other term loan agencies/commercial banks as required by the developer and regulate the allotment of wind generation power projects.

NEDCAP extends the following services to the wind farm developers to set up projects in private sector.

  1. Clearance of projects.
  2. Selection of suitable sites for projects.
  3. Providing wind data and related parameters.
  4. Contour map of the site
  5. Guidance on equipment, erection and commissioning
  6. Guidance on inter-facing of the project.
  7. Co-ordination with the revenue department on the land allotment.
  8. Necessary technical assistance

Q. What is the (i) Capital cost of the wind power project,...

Q. What is the (i) Capital cost of the wind power project, (ii) Cost of electricity generation and (iii) Average capacity utilization factor of wind power projects?

i)The average capital cost of wind power project varies from around Rs. 5.5 crores to Rs.6 crores per MW.

ii)The cost of generation of wind power projects varies from Rs. 3.00 to Rs. 4.00/unit depending upon site, capital cost, interest rate, etc.

iii) The average utilization factor in the country is about 21% which varies from 17% to 26% depending upon the wind power density, the type and size of turbines and the availability of grid.

Q. What is the present buy back rate of wind power in Andhra...

Q. What is the present buy back rate of wind power in Andhra Pradesh?

The buyback rate of wind power in Andhra Pradesh is 3.50Rs.per KWh which is decided by government.

Q. What is the energy payback time for a wind turbine?

Q. What is the energy payback time for a wind turbine?

The ‘energy payback time’ is a term used to measure the net energy value of a wind turbine or other power plant. i.e., how long does the plant have to operate to generate the amount of electricity that was required for its manufacture and construction. Wind energy has one of the shortest energy payback times of any energy technology. A wind turbine typically takes only a few months to “payback” the energy needed for its fabrication, installation, operation and retirement.

Q. How many sites in Andhra Pradesh have been considered sui...

Q. How many sites in Andhra Pradesh have been considered suitable for setting up commercial wind power projects?

An annual mean wind power density greater than 200 watts/ m2 at 50 m height has been recorded at wind monitoring stations, covering sites in 4 Districts, viz. Some potential sites were identified by MNRE. Mostly in Anantapur, Cuddapah, Kurnool and part of Chittoor and Nellore. These sites could be considered suitable for setting up commercial wind power projects.

Q. How to measure the winds at a site?

Q. How to measure the winds at a site?

To estimate the energy production of wind power plants, developers must first measure the wind resource on the selected location. Meteorological towers equipped with anemometers, wind vanes, and sometimes temperature, pressure, and relative humidity sensors are installed. Data from these sensors / equipments must be recorded for at least one year to calculate an annually representative wind speed frequency distribution. 

Q. Are winds available throughout the year?

Q. Are winds available throughout the year?

Wind is a variable in nature and varies time to time and place to place. It is predominantly driven by the monsoon and winds in India are influenced by strong South-West summer monsoon (April to September) and weaker North-East winter monsoon.

Q. What are the power evacuation facilities needed?

Q. What are the power evacuation facilities needed?

  1. The eligible developer shall bear the entire cost of power evacuation facilities for interconnecting the wind plants with the Grid and delivery of power.
  2. The eligible developer shall abide by the orders, rules, regulations and terms and conditions as approved by the Commission from time to time for operation of wind plants, power evacuation, transmission and wheeling of energy.

Q. Where does the power generated from a wind turbine go?

Q. Where does the power generated from a wind turbine go?

Normally, the power produced by large wind turbines is evacuated to nearby substation or consumer through grid. The power concentrated to the grid can be sold to the DISCOMS or any private party, can also be used for captive use by paying wheeling charges alone.

Q. What happens when the winds become too much for the wind ...

Q. What happens when the winds become too much for the wind turbines?

When the wind speed is high beyond cut-out speed, the turbine stops producing power and goes into an inert state to avoid components stress and damages. Normally the machines are manufactured with safety incorporation to cater to most of the conceivable emergencies.

Q. What is the life of a Wind Turbine?

Q. What is the life of a Wind Turbine?

Generally, the present wind turbines are designed to last for a period of 20 years. It can also be designed for more than 20 years, only thing is the machine will be far more bulky and costlier than what is available now.

Q. Will a wind turbine produce power in the rain season?

Q. Will a wind turbine produce power in the rain season?

Yes, but the generation will be less when the air is humid and has larger percentage of water molecules. If the air is dry and has no water molecules, a wind turbine will produce more power.

 

Q. Does wind turbines height affect the generation?

Q. Does wind turbines height affect the generation?

Yes, to achieve more power generation, the turbine should require more wind speeds with velocity, which will be available in a good elevation. If the rotor is placed at a height where the flow is least obstructed by obstacles and as the height increases the wind faces less friction from its nearest surface.      

Q. What will be the power generation in a 100kW wind turbine...

Q. What will be the power generation in a 100kW wind turbine?

A 100 kW wind turbine produces 100 kWh or units of electricity after running for an hour, at its rated wind speed of about 12 – 14 m/s. Likewise, a 250kW turbine at its rated wind speed of about 12m/s produces 250 KWh after 1 hour of operation.

Q. What are the minimum eligible requirements for installing...

Q. What are the minimum eligible requirements for installing a wind power plant?

 The minimum eligible requirements for installing wind power plant are,

i) The WEGs installed should be new and match the specifications issued by from time to time.

ii) Minimum turbine capacity of WEGs proposed for installation would not be less than 225 KW.

iii) Eligible developers shall enter into all applicable agreements as per the guidelines issued by the APERC.

Q. Who are Eligible Developers of wind generation?

Q. Who are Eligible Developers of wind generation?

Wind farm developers, wind energy generator manufacturers, government owned companies, private companies, joint venture companies and private investor would be eligible developers of wind power generation.

Q. What are the advantages of wind energy?

Q. What are the advantages of wind energy?

The following are the advantages of wind energy

  1. No fuel cost
  2. Environment friendly and pollution free
  3. Potential exists to harness wind energy
  4. Lowest gestation period and capacity addition can be in modular form
  5. Cost of generation reduces over a period of time
  6. Low O&M Costs
  7. Limited use of land
  8. Accommodation of other land uses
  9. Employment
  10. New market
  11. Local Infrastructure & economy development

Q. What is a wind turbine?

Q. What is a wind turbine?

A wind turbine is a system which transforms the kinetic energy available in the wind into mechanical or electrical energy that can be used for any required application

s. Mechanical energy is most commonly used for pumping water. Wind electric turbines generate electricity that can be utilized locally or transported to the desired location through grid.

Q. What is wind energy?

Q. What is wind energy?

The energy generated by utilizing the speed and velocity of wind through a wind turbine. When the wind flows the wind turbine rotates and energy is generated. 

Q. What are the steps involved installing wind power plant?

Q. What are the steps involved installing wind power plant?

The steps involved installing wind power plant is as follows

Step1: Eligibility criteria

The government owned companies, private companies, joint venture companies and private investor would be eligible developers of wind power generation.

Step 2: Applying for approval

The developers who seek the approval for setting up of wind plants should submit the application form in the prescribed format along with application fee of Rs.25,000/- per MW and detailed project report with all the necessary documents to be submitted.

  1. Details of financial capabilities for implementing the wind power project along with relevant documents shall be produced.
  2. Balance sheet for last three years and latest net worth certificate shall be furnished.
  3. The sites shall be within the areas notified for wind power development or self identified by the project developers. In case of sites which are not notified, the C-WET validation report shall be submitted along with proposal.
  4. The project proposals will be evaluated and Board of NEDCAP will accord final clearance to set up the projects. In respect of capacities higher than 20 MW, the Board of NEDCAP may consider for recommending for sanction to the Govt.
  5. The developer will have to enter into agreement with NEDCAP on allotment and sanction of the project. At the time of agreement, the project developer shall pay an amount of Rs.1, 50,000 / MW towards sanction fee which is non refundable.

Step3:Allotment of land.

The developer who gets approval from the government will be allotted the government land the developer has to pay an amount fixed by the collector of the District to acquire the land.

  1. The developer shall submit performance bank guarantee of Rs.2,00,000 / MW in case the projects are proposed to be set up in Revenue / Forest Areas and Rs.1,00,000 / MW in case the projects are proposed to be set up in private lands.

Step 4: Installing wind plant.

After the allotment of land the wind developers can install the plant and has to arrange for the evacuation of power.

Step 5: Evacuation of power.

 After installing the wind plant developer has to arrange for the evacuation of power from the generating station to the grid at his cost. 

  1. The developer will approach AP Transco / DISCOMs for making arrangements to interface the wind farm with the nearby grid duly providing the energy meters for import and export.

Step 6: Wheeling of power.

Developers would be eligible for using the power produced for captive consumption or making sale to a third party or to DISCOMS. A PPA will be required to be entered into with concerned DISCOM as per the power purchase guidelines and Wheeling Agreements will be required to be entered into with APTRANSCO or/and DlSCOMS   as per Open Access regulations, and any other relevant guidelines issued by the Regulatory Commission.

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